ZERA Reduces Fuel Prices, Implements Tax Cuts and Increased Blending

Harare - The Zimbabwe Energy Regulatory Authority (ZERA) has announced a reduction in petroleum prices, effective immediately, as government interventions try to buffer the domestic market against a turbulent international energy landscape.

Under the new pricing structure released on 17 April 2026, the price of Diesel 50 has fallen to US$2.09 per litre, down from the US$2.11 recorded at the start of the month.

More significantly, the price of petrol has seen a sharp decline; Blend E20 is now pegged at US$2.08 per litre, a substantial drop from the US$2.23 charged for Blend E5 just two weeks ago.

Government, through ZERA, says the downward trend reflects an aggressive fiscal strategy to protect the Zimbabwean economy from the ongoing blockade of the Strait of Hormuz.

The blockade, which has severely restricted oil flow through one of the world's most vital maritime chokepoints, initially sent Free On Board (FOB) prices for diesel soaring by over 33%.

In response to these "piling cost pressures" that threatened to push diesel prices as high as US$2.65 per litre without intervention, the government says it took the unprecedented step of removing all taxes and levies on diesel to support the mining, agriculture and transport sectors.

The primary driver behind the current reduction in petrol prices is the strategic transition in blending mandates, ZERA said.

By moving from E5 to E20 blending, coinciding with the commencement of seasonal ethanol production, authorities have managed to slash the pump price by approximately 15 cents per litre.

ZERA noted that the move to E20 is a cornerstone of the current thrust to ensure minimal impact on the economy while guaranteeing a continuity of supply that is less dependent on expensive, imported finished products.

To further ensure energy security, the government has diversified its logistics, approving the importation of diesel by road in addition to traditional pipeline and rail routes from Beira.

The multi-modal approach is designed to ensure that fuel reaches remote areas and remains accessible despite the conflict-driven disruptions in the Middle East, ZERA said.

With national stocks currently guaranteed for a period spanning over three months, ZERA has advised the public against panic buying, noting that the situation remains under close monitoring with further reviews expected within the next fortnight.